Formulation and estimation of stochastic frontier production function models

Previous studies of the so-called frontier production function have not utilized an adequate characterization of the disturbance term for such a model. In this paper we provide an appropriate specification, by defining the disturbance term as the sum of symmetric normal and (negative) half-normal random variables. Various aspects of maximum-likelihood estimation for the coefficients of a production function with an additive disturbance term of this sort are then considered.     

Empirical Analysis of the Yield Curve: The Information in the Data Viewed through the Window of Cox, Ingersoll, and Ross

This paper uses recent advances in Bayesian estimation methods to exploit fully and efficiently the time-series and cross-sectional empirical restrictions of the Cox, Ingersoll, and Ross model of the term structure. We examine the extent to which the cross-sectional data (five different instruments) provide information about the model. We find that the time-series restrictions of the two-factor model are generally consistent with the data. However, the model's cross-sectional restrictions are not. We show that adding a third factor produces a significant statistical improvement, but causes the average time-series fit to the yields themselves to deteriorate.     

Market Consolidation and Productivity Growth in U.S. Wireline Telecommunications: Stochastic Frontier Analysis vs. Malmquist Index

This study analyzes the merger effects for 25 Incumbent Local Exchange Carriers over the period 1996–2005 using stochastic frontier analysis with a time-varying inefficiency model. We further conduct a comparison of results between the stochastic frontier analysis and the Malmquist index method. The empirical results indicate that the sample of telecommunications firms has experienced deterioration in average productivity growth following mergers. Significantly, both approaches suggest that firms that do not merge underperform in terms of average productivity growth.     

What’s so Mysterious about Mystery Shoppers? Understanding the Qualifications and Selection of Mystery Shoppers

Mystery shopping are a method of quality management that is utilized often in a variety of businesses. A holistic definition of a mystery shopper is, however, unclear. Literature relating to mystery shoppers was reviewed and analyzed through content analysis, to develop criteria which can be used to define a mystery shopper. The various traits identified were divided into personal traits, training elements, company considerations. The results of the paper provide a thorough analysis of the various traits that constitute a mystery shopper.     

Validating a DEA-based menu analysis model using structural equation modeling

While a restaurant's menu is known as the cornerstone of the operation, research aimed at optimizing it has not radically evolved. This is problematic in that traditional menu management and analysis models share the common and irremediable shortcoming of variable interdependency, in which the central intersection between vectors in a matrix is dictated by the means for the associated variables. In other words, changes to a single menu item alter the means of the related variables and artificially alter the position of other menu items. Moreover, the limited number of inputs, which typically ignore labor and labor costs, casts suspicion on any conclusions that are drawn. More recent models, such as those that integrate non-parametric statistics including data envelopment analysis (DEA), promise greater utility but have gone largely untested. This paper extends the more holistic model made possible by applying DEA and then tests the resulting archetype using structural equation modeling (SEM). The results suggest that DEA models are valid and that even more complex models are possible. For managers, the findings illustrate the inadequacy of earlier, simplistic models and call for a broader understanding of menu optimization approaches.     

Wirtschaft Online: Zweitverwertung oder publizistischer Mehrwert?

The present study analyzes the relevance and structure of business journalism in the internet aiming at a systematic analysis and evaluation of journalistic diversity in online business news coverage. Based on a multi-step procedure, 16 websites with high relevance for internet users were identified. In a subsequent communicator survey, the providers of these internet platforms were interviewed to derive insights into the structure and quality evaluation of online business journalism. Results indicate that internet-only business news coverage has not been able to establish itself yet. Further, the importance of traditional media brands for online communication could be confirmed. In spite of a judicial and organizational autonomy of the majority of the internet platforms, no provider generates his content independently of the umbrella brand. These facts may be attributed to limited personal manpower as well as differentiated and topic-oriented content recycling strategies aimed at the exclusivity of topics in general rather than content specific to certain channels.